투자효율성과 부채조달비용의 관련성

We studied the relationship between investment inefficiency and debt procurement costs. We used Tobin’s Q model and cash flow model to measure the excess investment propensity of the firm and calculate the debt financing cost using the borrowing interest rate and credit rating. The relationship between two variables was examined, In the previous study, the sample was limited to the securities market, or using the credit rating of the bond as a proxy of cost of debt, or adopting the OLS regression analysis as a methodology. In this study, we expanded samples from the securities market to the KOSDAQ market for the sample period from 2004 to 2015. Empirical results showed that the inefficiency of firms’ investment increases cost of debt. As the inefficiency of the investment increases, the cost of raising cost of debt The same result was obtained even after controlling for earnings management measured by discretionary accruals. This result implies that investor can regard investment inefficiency as an information risk for debt investors as a result of previous studies that investment inefficiency reflect managerial private profit seeking phenomenon and empire construction tendency. It is expected that information asymmetry caused by investment inefficiency can be a determinant of cost of debt between manager and creditor, and this study can provide useful information to extend the study of relation between investment and cost of debt.